Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm told by my realtor that it is very difficult these days to get a mortgage on a new construction condo, apparently because the lender is worried the rest of the units won't sell and the builder will default, etc. She also told me this specific property I'm interested in is not FHA-approved (presumably because they require 51% or more to be under contract or lived in, something like that). She also says there is a lender which the builder had a deal with ahead of time who agreed to give out loans on this property (which I later found out seems to be called "the preferred lender").
Does anyone have any thoughts on this? Does it sound right? I wouldn't be going through FHA but I don't how a complex not being "FHA approved" affects anything. I'm going to be calling some of the bigger banks in my area tomorrow to see what kind of information I can get out of them. The "preferred lender" is called 1st Constitution Bank, which must be a regional/local bank. Their website looks pretty cheesy and lists a 30 year fixed rate that is high compared to what they've been the past few weeks (although maybe it's just not updated). I have good credit (Fico = 802), good income, and will put down 20% on a loan of approximately 215k on a 1br unit. But it seems that may not matter if the complex is not yet fully filled. But, how on earth would it get filled if no one will give out a mortgage? It sounds pretty ridiculous to me.
If anyone has any advice, thoughts, or experience here, PLEASE share. I would really appreciate it. I would like to make an offer on this unit very soon, but am really unsure of how the financing might work.
I guess also, should I make an offer regardless of this? If I don't get the mortgage, then the deal falls through. But at least I can lock in the unit so no one else gets it in the mean time (permitting they accept my offer).
Well turns out this is a pretty normal issue, and is called a "non-warrantable" condo. The bigger issue besides getting financing might be that if the units aren't selling, the builder will continue to slash prices, thereby lowering property values of the other units in the complex. If I need to sell I'll be upside down on my mortgage. Not good.
Well turns out this is a pretty normal issue, and is called a "non-warrantable" condo. The bigger issue besides getting financing might be that if the units aren't selling, the builder will continue to slash prices, thereby lowering property values of the other units in the complex. If I need to sell I'll be upside down on my mortgage. Not good.
Exactly. you might not want to hear it, but it might be a good idea to wait a year, rent an apartment and go for it in a year. chances are the price will drop significantly and hopefully things will be looking up in regards to the economy
You're right, I don't want to hear it But thanks for the post. At this complex there are 26 units in total, 5 of which are 1br. 2 are sold (or under contract), and 3 are left. I'm afraid if I waited a significant period of time, those will be gone (although they may have a bunch of 2br and 3br still left, which I don't want). They just dropped the price ~25k (down from 299), and so they may go quicker now.
With the latest Fannie Mae regulations, unless the place is 70% sold, it will be difficult to get a loan from anywhere but the preferred lender. But try small regional savings and loans as sometimes the smaller banks which hold their loans and do not resell will still give you the loan.
investigate ryan homes. they have 3.5 down payment in some new community
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
But thanks for the post. At this complex there are 26 units in total, 5 of which are 1br. 2 are sold (or under contract), and 3 are left. I'm afraid if I waited a significant period of time, those will be gone (although they may have a bunch of 2br and 3br still left, which I don't want). They just dropped the price ~25k (down from 299), and so they may go quicker now.
